8-KMaterial AgreementsExhibits & Filings

MONOLITHIC POWER SYSTEMS INC 8-K Report, Material Agreement (Nov 1, 2006)

Filed November 1, 2006For Securities:MPWR

Summary

Monolithic Power Systems, Inc. (MPWR) filed an 8-K on November 1, 2006, reporting key executive compensation actions. The Compensation Committee approved a new form of performance unit agreement under the company's 2004 Equity Incentive Plan. This sets the framework for future performance-based compensation for employees. More specifically, the filing details the grant of 25,000 performance units to Mr. Maurice Sciammas, Vice President of Worldwide Sales and Tactical Marketing. These units are subject to a two-year vesting schedule, with 50% vesting one year after the grant date and the remaining 50% vesting two years after the grant date, contingent upon continued employment. This action reflects the company's strategy to incentivize key management personnel through equity awards tied to performance and continued service.

Key Highlights

  • 1Approval of a new form of performance unit agreement under the 2004 Equity Incentive Plan.
  • 2Grant of 25,000 performance units to Mr. Maurice Sciammas, VP of Worldwide Sales and Tactical Marketing.
  • 3Performance units vest over two years: 50% after one year, and 50% after two years.
  • 4Vesting is contingent upon continued service with the company.
  • 5The performance unit agreement establishes a structure for future equity-based compensation.
  • 6The filing indicates a focus on retaining and motivating key executive talent.

Frequently Asked Questions

The primary purpose of this 8-K filing is to report the Compensation Committee's approval of a new form of performance unit agreement and the subsequent grant of performance units to a key executive, Mr. Maurice Sciammas.

Mr. Sciammas' performance units will vest over a two-year period. Fifty percent (50%) will vest one year after the grant date (October 26, 2006), and the remaining fifty percent (50%) will vest two years after the grant date. Vesting is conditional on his continued employment with Monolithic Power Systems, Inc. on each respective vesting date.

A performance unit agreement is a document that outlines the terms and conditions under which an employee is granted performance units, a form of equity-based compensation. These units typically vest over time and may be tied to specific performance metrics (though not explicitly detailed for this grant in the filing) and require continued service with the company.

This specific 8-K filing does not provide specific financial valuations or the precise financial impact of these performance units. It primarily serves to disclose the entry into a material agreement (the performance unit agreement) and a specific grant to an executive.